Show calculations 1 ) Last year in Candamica , consumption expenditure was $20 b
ID: 2440497 • Letter: S
Question
Show calculations
1) Last year in Candamica, consumption expenditure was $20 billion, interest, rent, and profit were $2.5 billion, government expenditure on goods and services was $7 billion, net exports of goods and services was $5 billion, and investment was $2 billion. Hence total expenditure was(10 POINTS)
A) $24.5 billion.
B) $34.5 billion.
C) $36.5 billion.
D) $34 billion.
E) undetermined without information about imports.
2) Based on the data in the table above, what does GDP equal? (15 Points)
A) $10,200 billion
B) $10,400 billion
C) $10,000 billion
D) $9,800 billion
E) $8,900 billion
3) The table above has information about an economy. Using this information, GDP equals (15 Points)
A) $6,500 billion.
B) $7,800 billion.
C) $7,000 billion.
D) $8,500 billion.
E) some amount that cannot be calculated without information on the amount of government expenditures.
4) The base year is 2008. A country only produces MP3 players. The price of an MP3 player in 2008 was $100. The price of an MP3 player was $90 in 2009. The quantity of MP3 players produced in 2008 was 10,000 units and in 2009 was 10,500 units. Nominal GDP in 2009 equals(15 Points)
A) $900,000.
B) $945,000.
C) $1,000,000.
D) $1,050,000.
E) an amount that cannot be determined without information about nominal GDP in 2008.
?Data for 2009 Data for 2010
5) The table above gives the production and prices for a small nation that produces only bread and soda. The base year is 2009. What is nominal GDP in 2009? (15 Points)
A) $410
B) $450
C) $900
D) $550
E) $460
6) The table above gives the production and prices for a small nation that produces only bread and soda. The base year is 2010. What is real GDP in 2010? (15 Points)
A) $530
B) $1080
C) $510
D) $210
E) $300
7) A south sea island produces only coconuts. In 2008, the price of a coconut is $1 and the quantity produced is 200. In 2009, the price of a coconut is $1.50 and the quantity produced is 250. 2008 is the base year. Real GDP in 2009 is ________. (15 Points)
A) $375
B) $350
C) $200
D) $250
E) $1.50
Explanation / Answer
Question No . 1)
Total Expenditure=Y=C+I+G+NX
= 20+2+7+5
= 34
Right answer is : (D)
Note: Question does not contain table.